Unit 2 Organizational Agility Flashcards
What is organisational agility?
Organisational agility is the ability to rapidly change or adapt in response to changes in the market while delivering value quickly and reorganising to meet new opportunities.
Define business agility.
Business agility is rapid, continuous, and systematic evolutionary adaptation and innovation to maintain competitive advantage.
What promotes agility in an organisation?
Hyperconnectivity, networked structures, agile frameworks, scalable technologies, and customer-centric strategies promote agility.
What is hyperconnectivity?
Hyperconnectivity refers to the digital environment where systems, data, and devices interact and are interconnected via the internet.
How does social network analysis help with digital transformation?
It reveals how work really gets done by uncovering informal communication networks that influence collaboration and transformation.
Name three pillars for planning digital transformation.
1) Embrace agility, 2) Build customer-centric strategies, 3) Prioritize technology investments.
Why is organisational agility considered a new competitive divide?
Because speed and responsiveness to change now matter more than traditional advantages like size or legacy.
What are core competencies?
Core competencies are harmonized combinations of resources and skills that distinguish a firm and are hard to imitate.
List three core competencies in digital business.
Customer-centric innovation, data-driven decision making, agile operations.
What is agile methodology in software development?
An iterative approach that emphasizes stakeholder collaboration, sprints, continuous testing, and adaptability.
What is digital agility?
An organisation’s ability to quickly adapt using digital tools like low-code platforms and empowering citizen developers.
Name one organisation that failed due to lack of agility.
Blockbuster – failed to adapt to streaming and missed opportunities like buying Netflix.
What is the paradox faced by agile organisations?
The need to balance a stable foundation with dynamic capability—being both structured and flexible.
What’s the role of leadership in digital transformation?
Leadership drives transformation through top-down commitment, communication, and workforce upskilling.
What are the five actions to plan for digital transformation?
1) Embrace agility, 2) Build customer-centric strategies, 3) Prioritize tech, 4) Manage change, 5) Measure and iterate.
Why do large organisations struggle with agility?
They face legacy systems, rigid hierarchies, and fear of change which slow down adaptation.
How can agility become a competitive advantage?
By thriving on change, using stress and uncertainty to get stronger.
What is the “false trade-off” executives believe in?
The belief that you must choose between speed/flexibility and stability/scale—instead of combining both.
What are characteristics of agile company cultures?
Bias for action, free flow of information, and strong behavioural norms across all levels.
What is the McKinsey Organisational Health Index (OHI)?
A tool to assess how well an organisation aligns, executes, and renews itself—crucial for sustaining agility.
How does OHI relate to agility?
It measures internal health factors like leadership, accountability, and innovation that support agile transformation.
Why is OHI important in digital transformation?
It helps track transformation progress and ensures behaviours and systems support long-term agility.
